AstraZeneca lifts 2014 guidance as profit slides

HesterPlumridge

LONDON--Pharmaceutical company AstraZeneca PLC (AZN.LN) raised its earnings guidance for the year Thursday, as it continues to benefit from the delayed launch of a rival's copy of one of its best-selling drugs, but its profits slid as it continues to invest in marketing efforts and new drug development.

Sales rose 5% to $6.54 billion, helped by delays to the launch of a cheap copy of AstraZeneca's heartburn pill Nexium by Indian group Ranbaxy Laboratories, meaning doctors are still prescribing AstraZeneca's product.

Net profit fell to $254 million from $1.25 billion in the same quarter of the previous year. Core earnings a share were $1.05, down from $1.22.

AstraZeneca said it now expects sales to grow in low single digits for the full year, having previously expected no growth. The company also raised its guidance for core earnings a share, which strip out acquisitions and divestments, to fall by about 10% this year, rather than the low double-digit decline it had been expecting.

Investors will be focused on two further events this month. More details on AstraZeneca's pipeline of new drugs should be forthcoming at an investor day on Nov. 18.

In addition, a mandatory six-month cooling off period for Pfizer Inc.
PFE, -0.25%
expires on Nov. 26, following AstraZeneca's rejection of a $120 billion offer from the U.S. company in late May. Pfizer hasn't ruled out making another takeover approach.

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